The Travel Pro Company sells two kinds of luggage. The company projected the fol
ID: 2508166 • Letter: T
Question
The Travel Pro Company sells two kinds of luggage. The company projected the following cost information for the two products:
The company's total fixed costs are expected to be $280,000.
Based on this information, what is the combined number of units of the two products that would be required to break-even with the projected sales mix (round your answer to the nearest whole unit)?
3,500 units
3,111 units
1,556 units
None of these is correct.
Broadway Company produces and sells two models of calculators. The following monthly data are provided:
Total monthly fixed costs are expected to be $15,000. What is the break-even point in sales dollars at the expected sales mix? (Do not round your intermediate calculations.)
$19,231
$43,478
$68,182
$64,286
When drawing a cost-volume-profit graph, how are the axes labeled?
The horizontal axis would be labeled with dollars (of cost or revenue), while the vertical axis would be labeled with number of units (volume or activity).
The horizontal axis would be labeled with dollars (of total fixed costs), while the vertical axis would be labeled with dollars (of total variable costs).
The horizontal axis would be labeled with number of units (volume or activity), while the vertical axis would be labeled with dollars (of cost or revenue).
None of these answers is correct.
When performing sensitivity analysis, which of the following is an example of a variable that management may consider changing to answer "what if" questions?
Variable cost per unit
Sales price per unit
Fixed cost per unit
Both Variable cost per unit and Sales price per unit are correct.
Rolling Bag Carry-on Bag Unit selling price $ 250 $ 120 Unit variable cost $ 110 $ 80 Number of units produced and sold 4,000 6,000Explanation / Answer
As per chegg guidelines we answer one question per post. Kindly post remaining questions in next post 3,500 units Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Rolling Bag Carryon Bag Total Unit Selling price 250.00 120.00 Unit Variable cost (110.00) (80.00) Contribution per unit= SP- VC 140.00 40.00 No of units sold 4,000.00 6,000.00 10,000.00 Sales Mix 40.00% 60.00% 100.00% Weighted contribution 56.00 24.00 80.00 Fixed costs 280,000.00 BEP in Units = 280000/80 3,500.00 No of units at BEP = 3500*Sales Mix 1,400.00 2,100.00
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